Are you in the market to buy a house? There are lots of things to look over and some things aren’t so fun. You are making an investment and it’s important that you make a good one. If you want to start with the unappealing items first, it can help you weed out some of the houses a bit faster.
Here are some important questions to ask your realtor:
- How old are the big-ticket items?
- What do we do if the home inspection doesn’t come back good?
- What if the house doesn’t appraise?
- How do we prepare for closing?
How old are the big-ticket items?
You don’t want to go into the home and replace all the big-ticket items (HVAC, A/C, roof, appliances, etc.). That’s why you need to ask your realtor about the age of some of these items. After putting in your down payment and paying your closing costs you may not have extra funds to replace some of these things once you move in. You can also ask the seller to pay for a home warranty or pay for one yourself to help cover some of the cost.
What do we do if the home inspection doesn’t come back good?
The home inspector’s job is to find something wrong with the property. That is why you paid them (to do their job). No house will come back with a spotless inspection. You have to decide if what the inspection report finds is a big enough deal to you. Is it expensive? Will the current homeowner help resolve the problem? If not, you have to decide if you are willing to front the expense to get the issue resolved.
What if the house doesn’t appraise?
Depending on the market sometimes the house just doesn’t appraise; if you don’t have the money to cover the difference, the bank may not provide you with the loan. You can always ask the seller to go down on the price once the appraisal is back, but that is up to the seller because they are not obligated to do so.
How do we prepare for closing?
It’s important to speak with your mortgage officer and realtor on how you can prepare for closing and the items that you need to bring. They will also advise you not to purchase any big-ticket items as they can increase your debt-to-income ratio and the sale may not go through.
If you have questions about home buying or selling, be sure to contact one of our expert agents today.